Bitcoin is maintaining its position above $77,000, following a notable surge earlier in the week to its highest level since early February. This upward trend puts the cryptocurrency on track for its strongest monthly performance in a year, with a 13.6% increase in April, according to CoinGlass data.
The rebound comes after a challenging period for crypto markets, which experienced their longest losing streak since 2018, with consecutive monthly declines from October to February. The improvement in the macro backdrop, including a strong recovery in U.S.
equities with the S&P 500 and Nasdaq reaching record highs, has contributed to the turnaround. Additionally, the growth of Tether's USDT, the largest stablecoin, has surged to nearly $150 billion, adding approximately $5 billion over the past two weeks, which is seen as a positive signal for asset prices as it indicates increased liquidity in crypto markets. However, geopolitical risks and uncertainty surrounding the Iran war persist, keeping oil prices elevated. Markets seem to be looking past these risks for now, with strong corporate earnings and resilient equity markets offsetting concerns.
The next significant test for bitcoin will be the April Fed meeting, which could determine whether the current rally is sustainable. If institutional demand continues, bitcoin may break through the $79,000 resistance level, potentially leading to a higher trading range.